Trump's remarks (see below) are a very rare example of the leader of one sovereign state pushing another sovereign country to hand over territory.
- "The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US"
- "This complete "rip-off" of our Country will immediately stop"
- "It was not given for the benefit of others, but merely as a token of co-operation with us and Panama. "If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question."
More (in summary:
- Trump warned against potential Chinese influence, despite China not controlling the canal, but managing nearby ports through a Hong Kong-based company ... would not let the canal fall into the "wrong hands"
Panama's Response:
- Panamanian President Jose Raul Mulino rebuffed Trump, emphasizing Panama's sovereignty and defending canal fees as fair.
- "Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama),"
- Other Panamanian politicians also criticized Trump's statements.
Background on Canal Control:
- The U.S. built and administered the canal for decades before transferring control to Panama in 1999 following 1977 accords.
Strategic Importance:
- The canal handles 2.5% of global seaborne trade, critical for U.S. imports and exports.
- Trump's statements reflect a potential shift toward aggressive diplomacy, but international law offers no recourse for U.S. claims.
This article was written by Eamonn Sheridan at
www.forexlive.com.
